Economics

Question 1

1Marginal revenue is the

Easy

A. total revenue B. price times quantity C. average revenue D. addition to total revenue from selling one more unit

Question 2

2Average revenue is equal to

Easy

A. marginal cost B. total cost C. price D. profit

Question 3

3In the short run, a firm should shut down if price is below

Medium

A. average variable cost B. total revenue C. average fixed cost D. marginal revenue

Question 4

4TC = 100 + 5Q. When Q = 20, average cost is

Hard

A. GH¢200 B. GH¢5 C. GH¢105 D. GH¢10

Question 5

5Average cost is

Easy

A. total cost divided by output B. fixed cost only C. total cost times output D. the change in total cost

Question 6

6Costs that do not change with output, such as rent, are

Easy

A. fixed costs B. average costs C. variable costs D. marginal costs

Question 7

7For a firm with TR = 50Q − Q², marginal revenue at Q = 10 is

Hard

A. 20 B. 50 C. 40 D. 30

Question 8

8For the firm making 50 units at a total cost of GH¢700, what is the average cost?

Easy

A. GH¢4 B. GH¢50 C. GH¢14 D. GH¢10

Question 9

9Normal profit is

Medium

A. excess profit B. zero revenue C. the minimum profit needed to keep a firm in the industry D. a loss

Question 10

10A firm maximises profit where

Medium

A. total cost is lowest B. price is highest C. marginal revenue equals marginal cost D. average cost is zero